What are the most commonly used subjective techniques while planning for a facility location? Explain them.

In facility location planning, subjective techniques are often employed to complement quantitative methods by incorporating qualitative factors and expert judgments into the decision-making process. Some of the most commonly used subjective techniques include:

1. Factor Rating Method: The factor rating method involves identifying and evaluating various location factors or criteria based on their importance to the decision-making process. These factors may include proximity to markets, availability of labor, transportation infrastructure, utilities, government regulations, and community factors. Each factor is assigned a weight or importance rating based on expert judgment or stakeholder input. Locations are then scored and ranked based on their performance against these factors, allowing decision-makers to assess the overall suitability of each potential site.

2. Site Selection Committees: Site selection committees consist of a diverse group of stakeholders, including representatives from different departments within the organization, industry experts, local officials, and community members. These committees collaborate to review potential site options, evaluate location criteria, and assess the feasibility and implications of different choices. By bringing together multiple perspectives and expertise, site selection committees facilitate consensus-building and informed decision-making, ensuring that all relevant factors are considered in the location planning process.

3. Qualitative Risk Analysis: Qualitative risk analysis involves identifying and evaluating potential risks and uncertainties associated with different location options. These risks may include market volatility, regulatory changes, environmental hazards, political instability, and competitive pressures. Decision-makers assess the likelihood and potential impact of each risk and develop strategies to mitigate or manage them effectively. Qualitative risk analysis helps identify potential challenges and opportunities associated with different location options, allowing decision-makers to make informed choices that minimize risk and maximize long-term success.

4. SWOT Analysis: SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a strategic planning tool used to assess the internal strengths and weaknesses of an organization, as well as the external opportunities and threats in the business environment. In the context of facility location planning, SWOT analysis helps decision-makers identify the advantages and disadvantages of different location options, as well as the potential opportunities and challenges they present. By analyzing these factors systematically, organizations can develop a clear understanding of their competitive position and make informed decisions about facility location that align with their strategic objectives.

These subjective techniques provide valuable insights and perspectives that complement quantitative analysis in facility location planning, allowing decision-makers to consider a wide range of factors and make well-informed choices that support the long-term success of the organization.